Denver asset protection planning attorney

Asset protection planning is an important step in the process of planning for the future of your loved ones. Regardless of your age and current health condition, a Denver asset protection planning attorney can assure proper asset protection planning ensuring that your spouse, children, or other surviving loved ones will have financial support when you pass.

Call Colorado Estate Matters today for a free consultation at (303) 713-9147.

What is asset protection planning?

Asset protection involves protecting your assets, including investment accounts, real estate, and other property, from litigation and seizure by creditors.

There are different types of asset protection plans, some of which are better suited to certain financial situations than others. By creating an appropriate asset protection plan for your situation, you can still retain control over your assets while safeguarding them from creditors and judgments.

What are some Asset protection planning tools?

There are a number of different asset planning tools and options that are available. The right one for you depends on your financial situation, your needs, and your wishes for the future. Some of these can include (but are not exclusive to): domestic and foreign asset protection trusts, credit shelter trusts, special needs trusts, and discretionary trusts.

Credit shelter trusts

Also known as by-pass trusts or family trusts, these trusts can shelter or protect certain assets from federal estate taxation obligations.

Special needs trusts

With a special needs trust, the trust’s assets can be used to offer financial support to loved ones who may have physical or mental impairments without compromising these individuals’ eligibility for essential government benefits.

Discretionary trusts

These types of trusts give a trustee discretionary power over how and/or when to administer the trust. The trustee also determines whether and how to distribute the trust’s assets.

From revocable living trusts to irrevocable trusts, there are various other types of trusts that can offer a broad range of asset protections to beneficiaries while limiting their potential costs – including in terms of future tax obligations – in the future.

Why should you feel the need to protect your assets?

Protecting assets from creditors

Creditors can garnish assets for several reasons:

To settle business debts
To pay a lawsuit settlement
As shared, divisible property in a divorce
If you file for bankruptcy

Although Colorado does not support the creation of self-settled Domestic Asset Protection Trusts (DAPT), irrevocable trusts established by a third party are another type of asset protection trust that could shelter assets from creditors.

If distributions are subject to the trustee’s discretion, then the assets are generally well-protected, even if the trustee is the beneficiary and if the trust includes standards of distribution such as those based on health. However, mandatory distributions may not be afforded the same protections from creditors.

Protection from lawsuits

Some professions carry a high degree of liability; professionals in some fields are more likely to be sued by a disgruntled customer or business associate. Doctors, lawyers, or small business owners may have their personal assets seized to settle a business-related lawsuit.

This is especially likely if they don’t have adequate malpractice insurance or if they didn’t set up their business in a way that protects their personal assets, like in an LLC.

Our Denver asset protection planning attorneys create for high-risk individuals lawsuit protections including:

Sufficient insurance, including an umbrella policy because it’s not uncommon that the state’s minimum insurance coverage requirements are insufficient to cover a loss. For example, if your policy’s property damage limit is $20,000 but you or a teen driver in your household caused $200,000 in property damage, a personal umbrella policy can cover the additional damages.
Using a pre- or post-nuptial agreement to transfer assets to a non-practicing spouse, leaving the medical office or law firm in the name of the practicing spouse.
Creating a Family Limited Partnership (FLP) or Family Limited Liability Company (family LLC) to shield assets from creditors. An FLP or FLLC can also reduce your estate or gift taxes.
An offshore trust – although there may be no tax benefits, there is asset protection because it can be more difficult for a creditor to pursue an asset that’s outside the U.S.
If you’re sued for malpractice or in a business dispute, your personal assets could be used to pay the plaintiff if you lose the lawsuit. However, assets in an asset protection planning trust could be shielded from the court’s decision because they form a separation of business and personal assets.

Creating a comprehensive asset protection plan

The Colorado Estate Matters estate planning attorneys help you select the right tools to preserve your assets and provide for your family. Part of this process will include looking at your potential tax liability and taking advantage of new and changing IRS tax exemptions. We will use a combination of multiple tools and strategies that are suitable to your financial needs and wishes.

Reducing tax liabilities

Individuals with high net worth, or those anticipating high estate taxes, can benefit from asset protection to reduce their estate tax bill. The applicability of certain asset protection plans and the extent of the tax protection will depend on the specifics of your situation.

Protecting family wealth

Asset protection ensures that family wealth remains in the family. A dynasty trust may be used to provide for the trustee’s children, grandchildren, and great-grandchildren with legal protections in place that shield the bulk of the assets in the trust from being spent unwisely.

What Are The Benefits of hiring a Denver asset protection planning attorney?

At Colorado Estate Matters, our team works closely with you to develop a valid plan to meet your financial goals, including setting up trusts and other protections for your heirs. When we understand your intentions, we can better identify which legal structures can best accomplish them.

When is the tight time to hire an asset protection planning attorney?

The best time to start working with a Denver asset protection planning attorney is now. Your lawyer will ask questions about your family wealth, investments, liability risk, and financial goals. They will then utilize trusts and other protective devices that will help you meet your goals. Preparing today will help you enact the right protections for your loved ones.

Why work with Colorado Estate Matters?

Our skilled asset protection planning lawyers bring a thoughtful approach to our client’s estate planning needs. We help our clients and their families find the best asset protection solutions. This means that our clients can always count on us to provide them with:

Personalized attention at every step of the process
Competent, caring, and professional representation
The highest quality of estate planning legal services at affordable rates.

Our estate planning attorneys in Denver, CO, are skilled at using various traditional and innovative strategies and tools to create solutions specifically tailored to our client’s needs and objectives. Our goal is to help our clients efficiently navigate the complexities of the law. So they can develop effective, prudent solutions that will protect them, their assets, and their families in the future.

Let Colorado Estate Matters, Ltd. help you

You can learn more about your asset protection options by attending an initial consultation with one of our attorneys at Colorado Estate Matters, Ltd. To schedule this meeting, call (303) 713-9147 or email us using our convenient online contact form.

What is probate in Colorado?

Probate in Colorado is the legal process by which a deceased person’s assets are distributed and their debts are paid under court supervision.

When is probate necessary in Colorado?

Probate is typically required when a person dies with assets solely in their name, and those assets exceed a certain value, or there’s any real estate. The threshold amount changes over time, so checking the current limits is essential.

How do I start the probate process in Colorado?

To initiate probate in Colorado, you need to determine if formal probate is required, and then file an Application or a Petition (as well as the necessary ancillary documents) with the appropriate court, depending on the circumstances.

What assets are subject to probate in Colorado?

Generally, assets that are solely owned by the deceased, such as real estate, bank accounts, and personal property, are subject to probate. Jointly owned assets with rights of survivorship, assets held in a trust, and assets with designated beneficiaries typically bypass probate.

How long does the probate process take in Colorado?

The duration of probate in Colorado can vary depending on the complexity of the estate and any disputes that may arise. Often it takes a year or more to complete.

What are the costs associated with probate in Colorado?

Probate costs in Colorado can include court fees, attorney fees, personal representative fees, and other administrative expenses. These costs can vary based on the size and complexity of the estate.

Can I avoid probate in Colorado?

Yes, there are strategies to avoid probate in Colorado, such as creating a revocable living trust, using beneficiary designations on assets like life insurance policies and retirement accounts, and jointly owning property with rights of survivorship.

What are the rights and responsibilities of a personal representative in Colorado?

The personal representative (executor or administrator) is responsible for managing the estate, paying certain debts and taxes, and distributing assets to beneficiaries in accordance with the law and the deceased person’s will (if one exists).

How are disputes handled in Colorado probate cases?

Disputes in Colorado probate cases can be resolved through mediation, negotiation, or litigation in court if necessary. Common disputes may involve the validity of the will, claims by creditors, or disagreements among beneficiaries.

Is estate tax a concern in Colorado probate?

Colorado does not have a state-level estate tax, but federal estate tax may apply to larger estates. It’s important to consider federal tax implications when dealing with an estate.